Suppose you have been hired as a financial consultant to Defense Electronics, Incorporated $($DEI$),$ a large, publcly traded firm that isthe market share leader In radar detection systems $($RDSS$).$ The company Is looking at setting up a manufacturing plant overseas toproduce a new line of RDSs$.$ This will be a five$-$year project The company bought some land three years ago for $$7\mathrm{.}2$ millon Inanticipation of using It as a toxic dump site for waste chemicais, but It built a piping system to safely discard the chemicals Instead. Ifthe land were sold today, the net proceeds would be $$7\mathrm{.}65$ millon after taxes. In five years, the land wll be worth $$7\mathrm{.}95$ millon aftertaxes. The company wants to buld Its new manufacturing plant on this land: the plant ill cost $$13\mathrm{.}2$ millon to build. The follovwingmarket data on DEl's securities are current:Debt:Commonstock:Preferred stock:Market:$91,$e$086\mathrm{.}8$ percent coupon bonds oUtstanding, $27$ years to maturity,par; the bonds have a $$1,00$ par value eachDEI's tax rate is $25$ percent. The project requires $$850,000$ In initlal net working capltal Investment to get operational.d$.$ Theand make semiannual payments$6.$ Calculate the project's Time O cash flow, taking Into account all side effects. Assume that any NWC ralsed does not requirefloatation costs$\mathrm{.}1,58$e$,$aee shares outstanding, selling for $$94\mathrm{.}5$e per share; the beta is$1\mathrm{.}25.$Note: A negatlve answer should be Indlcated by e minus slgn$.$ Do not round Intermedlate calculatlons and enter your answer indollars, not mllons of dollars, e$.$g$.,1,234,567\mathrm{.}74,098$ shares of $6\mathrm{.}2$ percent preferred stock outstanding, selling forb. The new RDS project Is somewhat riskier than a typical project for DEl, primarlly because the plant Is belng located overseas.Management has told you to use an adjustment factor of $+2$ percent to account for this Increased riskiness. Calculate theapproprlate discount rate to use when evaluating DEI'S project.ected market risk premium; $5\mathrm{.}1$ percent risk$-$free rate.Note: Do not round intermediste calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$c$.$ The manufacturing plant has an elght$-$year tax life, and DEl uses stralght$-$Ilne depreclation. At the end of the project $($Le$.,$ the end ofYear $5).$ the plant can be scrapped for $$1\mathrm{.}55$ million. what is the aftertax salvage value of this manufacturing plant?E$0$lFd octe The nian te te manufacture $13500$ PDSsner vear and sell them ar S$10900$Time $0$ cash flowper machine: the variable production costs are $$10,100$ per RDS$.$ What Is the annual operating cash flow, OCF, from this project?Note: Do not round intermediate calculations and enter your answer In dollars, not milllons of dollars, e$.$g$.,1,234,567.$e$.$ Caiculate the project's net present value.b$.$ Discount rateD. DNote: Do not round Intermedlete calculetlons and enter your answer In dollars, not millons of dollars, rounded to $2$ declmalpleces, e$.$g$.,1,234,567\mathrm{.}89$g$.$Aftertax salvage valued. Operating cash flowf. Calculate the project's internal rate of return.e$.$ NPV$.$ IRRNote: Do not rouncd intermediate calculatlons and enter your answer as a percent roundecd to $2$ declmal places, e$.$g$.,32\mathrm{.}16.$X Answer is not complete$\mathrm{.}21\mathrm{.}700\mathrm{.}0002\mathrm{.}400\mathrm{.}0006\mathrm{.}760,00025\mathrm{.}249\%$